Ivanhoe Corporation currently manufactures 2,700 staplers annually for its main product. The costs per stapler are as follows: Direct materials Direct labor Variable overhead Fixed overhead Total $9 13 10 13 $45 Gallup Company has contacted Ivanhoe with an offer to sell it 2,700 staplers for $36 each. $11 of the fixed overhead per unit is unavoidable. Prepare an incremental analysis for the make-or-buy decision. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Incremental savings on direct materials Incremental savings on direct labor Incremental savings on variable manufacturing overhead $ 24,300 35,100 27,100

Ivanhoe Corporation currently manufactures 2,700 staplers annually for its main product. The costs per stapler are as follows: Gallup Company has contacted Ivanhoe with an offer to sell it 2,700 staplers for $36 each. $11 of the fixed overhead per unit is unavoidable. Prepare an incremental analysis for the make-or-buy decision. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).)